STATE OF NEW YORK ________________________________________________________________________ 6169 2025-2026 Regular Sessions IN SENATE March 6, 2025 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law, in relation to establishing an abatement and exemption from real property taxes for capital improvements to reduce carbon emissions; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent. New York's nation leading climate law, 2 the climate leadership and community protection act of 2019 (CLCPA), 3 requires the state to reduce its greenhouse gas emissions to 40 percent 4 below 1990 levels by 2030, and 85 percent below 1990 levels by 2050, 5 among other goals. At the same time, New York city's local law number 97 6 for the year 2019 requires buildings over 25,000 square feet to reduce 7 their carbon emissions to comply with increasingly stringent emissions 8 limits. While New York's building stock accounts for more than 25 9 percent of statewide greenhouse gas emissions and transportation is a 10 top emitter, in New York city that ratio is reversed, with buildings 11 accounting for approximately 70 percent of greenhouse gas emissions. As 12 such, reaching the state and city's climate goals will require signif- 13 icant investment to decarbonize buildings including through electrifica- 14 tion, energy efficiency, and the use of new technologies and energy 15 sources. The use of this targeted abatement, which would be available to 16 support all property owners that are meaningfully engaged in reducing 17 carbon emissions will ensure the success of the CLCPA and local law 97. 18 This legislation will benefit all New Yorkers by ensuring that our 19 buildings can play a vital role in decarbonization. 20 § 2. The real property tax law is amended by adding a new section 21 488-b to read as follows: 22 § 488-b. Abatement and exemption from real property taxes for capital 23 improvements to reduce carbon emissions. 1. Any city having a population EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10674-01-5
S. 6169 2 1 of one million or more, acting through its local legislative body, is 2 authorized and empowered to determine that incentives in the form of 3 abatement and/or exemption of real property taxes are necessary to 4 encourage carbon emissions reduction in such city and to enact a local 5 law providing that such benefits shall be provided in the manner set 6 forth in this title. 7 2. For the purposes of this section, the following terms shall have 8 the following meanings: 9 (a) "Eligible real property" shall mean a covered building as defined 10 in section 28-320.1 of the administrative code of the city of New York, 11 or an appropriate subset of such covered buildings as determined by 12 local law. 13 (b) "Eligible improvements" shall include categories of work located 14 at eligible real property that are expected to result in a reduction of 15 greenhouse gas emissions for the building, including but not limited to 16 full or partial building electrification, building envelope improve- 17 ments, the installation of onsite clean energy generation, storage, or 18 electric vehicle charging infrastructure, or other measures that reduce 19 energy consumption as determined by local law provided however that such 20 work shall have commenced on or after January first, two thousand twen- 21 ty-three and shall be completed by December thirty-first, two thousand 22 thirty. 23 (c) "Full or partial building electrification" shall mean the instal- 24 lation and use of energy efficient electric-based heating, cooling and 25 domestic hot water systems to displace the use of fossil fuel sources 26 (e.g. fuel oil, natural gas, district steam) and/or less efficient elec- 27 tric-based heating systems. 28 3. Eligible real property reconstructed, altered or improved subse- 29 quent to the effective date of this section shall, upon enactment of a 30 local law authorizing such exemption, be exempt from taxation and 31 special ad valorem levies to the extent provided in this section. Any 32 exemption and/or abatement permitted pursuant to this section shall take 33 effect no sooner than the July first next succeeding the effective date 34 of this section. 35 4. Subject to the provisions of local law, any increase in assessed 36 valuation of eligible real property resulting from eligible improvements 37 may be exempt from taxation for local purposes for a period of up to 38 twenty years. 39 5. Subject to the provisions of local law, an eligible real property 40 may be eligible for an abatement of real property taxes of no greater 41 than twenty years that shall not exceed the cost of the eligible 42 improvements. 43 6. Notwithstanding the provisions of any state or local law, rule or 44 regulation to the contrary, any exemption or abatement shall be avail- 45 able notwithstanding the receipt of any other benefit under state, local 46 or federal law. 47 7. During the period of tax exemption or abatement pursuant to this 48 section, the exemption or abatement may be revoked upon a violation of 49 applicable oversight laws, where an agency with jurisdiction to enforce 50 such laws has requested a suspension of abatement or exemption based 51 upon violations of the multiple dwelling law, the local building code 52 and the local housing maintenance code, or other applicable law or regu- 53 lation. The benefits of this section may be revoked or reduced upon a 54 finding by the agency with jurisdiction to enforce such laws that: 55 (a) the application for benefits hereunder contains a false statement 56 or false information as to a material matter or omits a material matter;
S. 6169 3 1 (b) real estate taxes, water and sewer charges, payments in lieu of 2 taxes or other municipal charges are due and owing for more than one 3 year; 4 (c) the eligible real property fails to submit a report to the New 5 York city department of buildings as required by section 28-320.3.7 of 6 the administrative code of the city of New York; or 7 (d) after receiving notice of such a failure, that such owner has 8 failed to cure the deficiency within ninety days. 9 8. The local agencies of government charged with the administration of 10 this section may promulgate rules and regulations to carry out the 11 provisions of this section. 12 § 3. This act shall take effect immediately and shall expire and be 13 deemed repealed December 31, 2030.